œ78m Costain deal agreed

A œ78 million Costain rescue package by the ambitious Malaysian group Intria was given the go-ahead on Monday following an extra-ordinary shareholders meeting in London.

Alan Lovell, chief executive of the group, warned angry shareholders that without Intria's support Costain would be forced into receivership.

Following a poll, the deal was backed by a margin of more than three to one, despite fierce opposition from one of Costain's biggest shareholders, Kuwait-based Mohamed Abdulmohsin Kharafi which holds a 19% stake.

Monday's major surprise was that Saudi group Raymond International, also with a 19% stake, had a last-minute change of heart and voted for the rescue plan after indicating beforehand that it would vote against the proposal.

Costain's shares were suspended a month ago after tumbling to just 39p. On Monday afternoon they returned from suspension and rose to 46p by close.

One shareholder, Chris Wolf, emerged saying: "Everybody in there was terribly disappointed in Costain's management. We felt that our trust in the company has been betrayed. But we've been forced into a corner."